Farmers & Merchants State Bank

Bank Information

Episode Type: Run → Suspension → Unsure
Bank Type: state
Start Date: November 1, 1931*
Location: New Salem, North Dakota (46.845, -101.411)

Metadata

Model: gpt-5-mini
Short Digest: 8ffd5cf4

Response Measures

Full suspension

Other: Voluntary protective closing announced; reorganization/consolidation efforts mentioned for two New Salem banks.

Description

New Salem bank experienced withdrawals as part of a county-wide wave of runs following the closing of a small bank at Judson. The bank voluntarily closed as a protective measure and efforts were being made to consolidate/reorganize; the article does not definitively state whether the New Salem banks later reopened, so the outcome is ambiguous.

Events (2)

1. November 1, 1931* Run

Cause: Local Banks
Cause Details: Run followed closing of a small bank at Judson; produced withdrawals of about $25,000 from the two New Salem banks.
Measures: None specifically to stop withdrawals mentioned prior to suspension; withdrawals precipitated voluntary protective closing.
Newspaper Excerpt: Bankers said the closings took place as a protective measure and that they expected depositors to realize 100 per cent on deposits. ... Bankers said the run resulted in withdrawals of $40,000 within the last few days from the Farmers State Bank of Mandan and $25,000 from the two New Salem banks. The run followed the closing of a small bank at Judson last week.
Source: newspapers

2. November 6, 1931 Suspension

Cause: Voluntary Liquidation
Cause Details: Voluntary protective closing announced after runs; intended as protective measure while consolidation/reorganization planned.
Newspaper Excerpt: Voluntary closing of three Morton county state banks was announced Friday as the result of runs started early in the week. The banks closed are ... the Farmers and Merchants State Bank of New Salem...
Source: newspapers

Newspaper Articles (1)

1. November 6, 1931 The Bismarck Tribune Bismarck, Mandan, ND

Article from The Bismarck Tribune, November 6, 1931

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Article Text

THREE BANKS CLOSE IN MORTON COUNTY Run on Institutions Held Responsible; Reorganization Plans Made Voluntary closing of three Morton county state banks was announced Friday as the result of runs started early in the week. The banks closed are the Farmers State Bank of Mandan with total footings of $600,000. the First State Bank of New Salem and the Farmers and Merchants State Bank of New Salem, each with footings of $300,000. Bank officials said the closings took place as a protective measure and that they expected depositors to realize 100 per cent on deposits. They said the Mandan bank will be reopened while efforts are being made to consolidate and reorganize the two New Salem banks. Bankers said the run resulted in withdrawals of $40.000 within the last few days from the Farmers State Bank of Mandan and $25,000 from the two New Salem banks. The run followed the closing of a small bank at Judson last week. The First State Bank of New Salem has bonds of $80,000 and the Farmers and Merchants bonds of $40.000 while the Farmers State Bank of Mandan has bonds. stocks and warrants of $107.000. The Mandan bank is backed by the Lanterman interests. W. A. Lanterman died a few years ago, leaving an estate of about $1,000.000. Officers of the bank declared that paper carried was very conservative in every instance. John A. Timmerman, cashier of the Mandan bank, is a heavy stockholder in the two New Salem banks.